Samsung Elec likely crowned as world's top technology hardware maker

Samsung Elec likely crowned as world's top technology hardware maker

Samsung Elec likely crowned as world's top technology hardware maker

Samsung Electronics topped analysts' estimates with its best operating profit, as global demand for semiconductors remained strong and the new Galaxy S8 smartphone won over customers.

"Samsung will continue to generate quarterly operating profits hovering above 13 trillion won throughout the second half of this year", Kwon Seong-ryul, a researcher at Dongbu Securities Co. said in a report. After its Galaxy Note 7 phone was widely publicized for its flammability, Sammy continued to struggle in Q1 this year, marking a 9% decrease in year-on-year operating profits. Samsung Electronics' smartphone archrival Apple is estimated by the market to have earned $10.55 billion from operation in the April-June period.

Samsung did not announce the performance of each business division.

Samsung is forecasting quarterly profits boosted by increased demand for its memory chips and display panels, as it puts the Note 7 debacle of a year ago behind it.

Samsung said on Tuesday it would invest $18.6 billion to extend its lead in memory chips and next-generation displays, a move likely to ease shareholder fears that major decisions were on the backburner while Vice Chairman Jay Y. Lee fights bribery charges in court.

Samsung's Q2 2017 results are coming later this month, and the company has released earnings guidance to give everyone an idea of how they believe they've performed over the last quarter. The tech giant predicts that it will generate 60 trillion won ($51 billion) in revenue and 14 trillion won ($12.1 billion) in operating profit during the period.

Despite unaudited results that beat analysts' consensus and a bright outlook for the third quarter, Samsung shares slid almost half a point to 2,393,000 won during Friday's session.

It was also rocked by a crisis at its smartphone business when a number of its flagship Galaxy Note 7 devices were reported to have caught fire during use.

Samsung - which accounted for more than 40% of global memory chip sales in the first quarter of this year - posted in April its biggest quarterly net profit in more than three years.

The issues with the Galaxy Note 7 wiped out Samsung's third-quarter profit past year.

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